Unionists fear deregulatory drive by Coalition

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The trade union movement was facing one of the toughest challenges in Australia's labour history with the prospect of a new Coalition government controlling the Senate.

Senior union leaders yesterday warned of a deregulatory drive by the Howard Government to rival the assault on organised labour by former British prime minister Margaret Thatcher during the 1980s.

Unionists predicted the Government would push through new laws exempting small business from unfair dismissal laws, restricting union right of entry and regulations encouraging individual contracts above collective agreements.

The unions blamed a fear campaign by the Coalition on interest rates, which had undermined voter confidence in change.

ACTU president Sharan Burrow said that despite the ALP hitting the right notes with health and education, it had failed to adequately assess the impact of a fear campaign on rates.

"I think the story we painted about two Australias was right, particularly if you are a struggling family - and there are many in that category. But a lot of them are also paying big mortgages and are carrying large credit-card debts which caused the interest rates argument to bite. The question of the economy and jobs was critical and we have to think more about that," she said.

Ms Burrow said the Coalition's Senate majority would be a concern without the moderating influence of minor parties.

She said the states would come under huge pressure to preserve public education and health from a Coalition devoted to privatisation.

"The strength of our commitment to collective bargaining will be tested and workplace volatility will be substantially increased over the next three years. I think people will now have more to fear from unsafe workplaces and from bullying bosses," she said.

I think people will now have more to fear from unsafe workplaces and from bullying bosses. SHARAN BURROW

National Australian Manufacturing Workers Union secretary Doug Cameron said the ALP had lost its ability to brand key policies in health and education.

"But the greatest problem for us was society is massively increasing debt for ordinary people. Interest rates were an easy target for a fear campaign because it makes people captive. People resist change because they become paranoid about an increase in the amount of money needed to service their debts," he said.

Mr Cameron said unions were facing difficult times.

"Howard's mission in life is to destroy real collective bargaining. Through a loss of unfair dismissal protection, workers in small business will soon realise that they will be exposed to the power of management."

National Australian Workers Union secretary Bill Shorten said the electorate could not shift to the ALP despite the party producing credible, costed policies on health and education. He decried the decision to move too close to the Greens on environment policy.

National Construction, Forestry, Mining and Energy Union secretary John Maitland agreed that fear was the underlying cause for voter caution. But he said those who sought a return to Australia's egalitarian culture would be disappointed.